Asset Management


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Asset Management

  1. 1. Careers in Finance: Asset Management Kurt Martinson 01.16.2008
  2. 2. Overview <ul><li>What is Asset Management? </li></ul><ul><li>Sub-classifications of AM. </li></ul><ul><li>Areas within AM. </li></ul><ul><li>Day in the Life. </li></ul><ul><li>How to get in? </li></ul><ul><li>Skills needed. </li></ul><ul><li>Interview Prep. </li></ul><ul><li>Tools/Resources. </li></ul>
  3. 3. What is Asset Management? <ul><li>Investment & Wealth Management solutions. </li></ul><ul><li>Clients: Institutions, high net worth clients, retail investors, pension funds, governments, foundations. </li></ul><ul><li>Asset Classes: Fixed Income, Equities, Hedge Funds, Private Equity, Real Estate, etc. </li></ul>
  4. 4. Asset Management Branches Asset Management Investment Management Private Client Services Private Banking
  5. 5. Areas in AM <ul><li>Client Side v. Alpha Side: </li></ul><ul><ul><li>Client- </li></ul></ul><ul><ul><ul><li>bringing in new business. </li></ul></ul></ul><ul><ul><ul><li>servicing current clients. </li></ul></ul></ul><ul><ul><ul><li>explaining strategy & products. </li></ul></ul></ul><ul><ul><li>Alpha (Analytics)- </li></ul></ul><ul><ul><ul><li>construct portfolios. </li></ul></ul></ul><ul><ul><ul><li>directly trade securities. </li></ul></ul></ul><ul><ul><ul><li>monitor daily accounts. </li></ul></ul></ul>
  6. 6. Typical Career Path 2-4 Year Analyst Program Graduate School Associate Level Portfolio Manager Hedge Fund Manager James Madison University
  7. 7. Analyst Job Options <ul><li>Investment Analyst: </li></ul><ul><ul><ul><li>financial analysis </li></ul></ul></ul><ul><ul><ul><li>prepare client communication materials </li></ul></ul></ul><ul><ul><ul><li>assist PM in developing trade flows </li></ul></ul></ul><ul><ul><ul><li>review comparisons of account positions </li></ul></ul></ul><ul><li>Research Analyst: </li></ul><ul><ul><ul><li>work with buy-side analysts </li></ul></ul></ul><ul><ul><ul><li>analysis & views on products, securities, </li></ul></ul></ul><ul><ul><ul><li>industry sectors, etc. </li></ul></ul></ul>
  8. 8. Analyst Job Options <ul><li>Quantitative Analyst: </li></ul><ul><ul><ul><li>build models for wide range of products. </li></ul></ul></ul><ul><ul><ul><li>provide metrics to PMs to help in portfolio construction. </li></ul></ul></ul><ul><li>Client/Marketing Analyst: </li></ul><ul><ul><ul><li>product & services positioning. </li></ul></ul></ul><ul><ul><ul><li>prepare client presentations. </li></ul></ul></ul><ul><ul><ul><li>perform competitive analysis. </li></ul></ul></ul><ul><ul><ul><li>respond to client inquiries. </li></ul></ul></ul>
  9. 9. Day in the Life... <ul><li>06:15am- Wake up to get ready for work. Read both the WSJ & </li></ul><ul><li>Financial Times on my way in. </li></ul><ul><li>07:30am- Just getting into the office; look over Research broker reports. </li></ul><ul><li>09:00am- Morning meeting to discuss news, results and anything else affecting </li></ul><ul><li>client portfolios. </li></ul><ul><li>10:00am- Meet with colleagues to discuss business issues regarding the team. </li></ul><ul><li>11:00am- Meeting with Hedge Fund which deals in international equities that </li></ul><ul><li>some clients hold. </li></ul><ul><li>11:50am- Take call from Research Sales guy inviting me to lunch later that </li></ul><ul><li>week with one of their corporate clients. Shares look expensive on </li></ul><ul><li>first look so I decline. </li></ul><ul><li>12:45am- Lunch with a potential investor. </li></ul><ul><li>02:30pm- Meetings until 5:30 with teams and researchers discussing views on </li></ul><ul><li>the market and portfolio strategies. </li></ul><ul><li>5:30pm- Attend presentation being put on by Jersey trust company, one of </li></ul><ul><li>our biggest clients. </li></ul><ul><li>7:30pm- Pick up some research, return phone calls and head home on the train. </li></ul>
  10. 10. Three Skills for AM <ul><li>Qualitative </li></ul><ul><li>Quantitative </li></ul><ul><li>Communication </li></ul>
  11. 11. Interviews <ul><li>Prep Work: </li></ul><ul><ul><ul><li>Be well read on the markets and the economy (WSJ, Barron’s, Financial Times etc.) </li></ul></ul></ul><ul><ul><ul><li>Have your “Tell me about yourself” statement. </li></ul></ul></ul><ul><ul><ul><ul><li>Know three level above what your resume states. </li></ul></ul></ul></ul><ul><ul><ul><li>Know the job you are applying for. </li></ul></ul></ul><ul><ul><ul><ul><li>Why that particular company? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Why is that position a good fit? </li></ul></ul></ul></ul><ul><ul><ul><li>Have thoughts on economy ready. </li></ul></ul></ul><ul><ul><ul><li>Have pitch for securities that you are bullish on. </li></ul></ul></ul><ul><ul><ul><li>How do you value a company? </li></ul></ul></ul>
  12. 12. Tools/Resources <ul><li>JPMorgan Careers; Asset Management. </li></ul><ul><li>Vault Guides: Finance; Investment Mngt. </li></ul>